Many think that we are about to witness the end of Bitcoin and all cryptocurrencies in general; and it is not easy to convince them otherwise, given the current bearish scenario that cryptos carry throughout 2022.
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But we have reason to be optimistic
Because despite the fact that Bitcoin and altcoins are having a bad year, with a downward trend that does not seem to want to reverse, it is also true that the stock market (commodities, currencies and shares) In general, they are not having an easy year either. Yes, it is true that this is a complicated year for many more reasons than we could list in a short article (and we know them very well), but it is also true that we have more than enough reasons to be optimistic in this regard.
Because the entire crypto world in general (with few exceptions), in terms of price, moves depending on what Bitcoin does or does not do and because we know that despite the current downtrend, Bitcoin is in an uptrend on the chart monthly.
Yes, we must admit it, Bitcoin is in a downtrend in each and every one of the lower timeframes, but the monthly timeframe is the one that should concern us the most, because it speaks of the most likely performance of BTC in the long term, which in the end accounts, it is the trend that has never, ever been in a downtrend ever during the 13 years of existence of the queen cryptocurrency.
Image of Bitcoin Chart (Month timefreme) from the investing.com platform
The monthly chart of Bitcoin is telling us that we can be sure that the trend will reverse at some point, and that we just have to be optimistic and patient. Because, doing a little technical analysis, the only scenario that should concern us when analyzing the Bitcoin chart on a monthly basis is if the price falls below $8,050 or below $8,000, because in that case we would be seeing unprecedented behavior for BTC.
Are there more reasons to be optimistic?
Yeah, another reason is that we're less two years away from the next Bitcoin halving (which will be in 2024), so it's easy to predict that the entire market will straighten out (i.e. go range-bound and then to uptrend), before the time of the halving arrives.
In fact, I think that we will may see Bitcoin in an uptrend again, around the middle of 2023. But this is too long for most people who, due to bad decisions, or for whatever reason, are tearing their hair out, due to the impatience caused by the current situation of the crypto market in terms of liquidity.
But we must be patient, and understand that everything is due to market cycles; and that when Bitcoin reverses the current trend (and we can be sure that it will), all, or almost all, cryptocurrencies will do so too; and then we will have a bull market again.
So this too shall pass, let us not forget.
What we all need to understand
What we must all understand in terms of the behavior of the Bitcoin market price, is that Bitcoin is not its value in dollars, that is, its value is not measured in terms of what it is worth or is not worth in dollars, but rather in terms of of its usefulness as a technology and as a means of payment.
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There are no mysteries, Bitcoin is the future, and what we see as prices in the markets are nothing more than momentary appreciations of the different market factors; in such a way that if we say that Bitcoin is currently worth $21,300, we can never think that this is its real value in that sense, we cannot even think that about it if it becomes worth $100k or any else amount of money.
The fluctuations of Bitcoin in terms of dollars (of fiat money), are the result of the laws of supply and demand, because if there are more buyers than sellers, the price will always tend to rise, because there is more demand what offer; but if the opposite happens, that is, if there are more sellers than buyers, then the price will begin to fall, because there is more supply than demand. Now do you understand why the price of Bitcoin (and of any asset), starts to fall precipitously when the whole world seems to be falling prey to FUD?
So, if we analyze it well, we have every reason to be optimistic about Bitcon in the future, and the current scenario should not scare us at all, but we should be happy to be able to buy BTC at these low prices again, because believe me, when When the next halving arrives, the prices at which we are currently seeing Bitcoin, and the other important cryptos in the market, will be seen as a real bargain that will never be repeated; and it will be then that many will regret not having bought when they could, only for having been guided by their irrational fears.
Be careful, this post only expresses my opinion about Bitcoin and the crypto market in general, and is not an investment recommendation for anyone. Each one is responsible for what he does or does not do with his money, because, as I always say, that is what his money is for. What I do advise everyone is that if you decide to invest, never invest money in the markets that you cannot afford to lose, and never invest just because someone else tells you, instead do your own own research and market studies and make their decisions accordingly.
What do you think about the topic discussed? Please comment.
Gif created by @piensocrates
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